With the second wave of the pandemic hitting the country, summer-centric product makers like beverage and air-conditioner makers may be in for another challenging season. Industry observers are concerned about the subdued out-of-home sales for the beverage industry. AC makers are also likely to witness impact on demand due to restrictions in some states.
For impulse product categories such as beverages, March to June contributes over 50 per cent of the annual volumes and a significant chunk of this comes from the out-of-home channel which includes restaurants and hotels. However, beverage players said that the scorching temperatures and strong in-home consumption are expected to continue to be the growth drivers for the industry.
Mohit Malhotra, CEO, Dabur India Ltd said: “Consumption of packaged juices and beverages has bounced back in the recent quarters in line with the growing consumer need for health. While the HORECA (Hotels, Restaurants, events and catering) channel continues to be impacted, the early onset of summers is helping drive growth for the beverage industry.”
Nadia Chauhan, Joint Managing Director & CMO, Parle Agro said, “We are aware that out-of-home consumption is likely to take a hit once again during this period, however, we hope that, like last year, we will witness a surge in various SKUs more for in-home consumption. Across the country, owing to favorable weather conditions, we are currently witnessing a consumption boom.”
“On a positive note, the implemented restrictions are only in Maharashtra at the moment. With time, we will be able to better analyse the situation. Fortunately, unlike last year, things are more in control and everyone is able to work around business requirements. Our distribution too is being effectively managed,” she added.